May 2016 Housing Starts in Ontario

TORONTO, ONTARIO--(Marketwired - June 8, 2016) - Housing starts in the Ontario region were trending at 66,549 units in May, down from 69,958 units in April, according to Canada Mortgage and Housing Corporation (CMHC). The trend is a six month moving average of the monthly seasonally adjusted annual rates (SAAR) of housing starts.

"The Ontario residential construction trend moved lower in May and has trended lower since peaking in January. The decline in May was due solely to the row and apartment sector where starts moved to a more sustainable longer term level based on household formation rates. Overall activity masks underlying strength in recent months for single and semi-detached construction. Demand for single detached homes is supported by low mortgage rates, an undersupplied low-rise resale market and improving income growth", said Ted Tsiakopoulos, CMHC's Ontario Regional Economist.

CMHC uses the trend measure as a complement to the monthly SAAR of housing starts to account for considerable swings in monthly estimates and obtain a more complete picture of the state of the housing market. In some situations, analysing only SAAR data can be misleading in some markets, as they are largely driven by the multiples segment of the markets which can be quite variable from one month to the next.

The SAAR of total urban housing starts increased to 64,918 units in May, up from 62,403 units in April. Urban centers outside of the GTA contributed most of the growth in May. For the period ending May 2016, Ontario urban home starts are running seven per cent higher versus the same period one year ago largely due to stronger single starts.

As Canada's authority on housing, CMHC contributes to the stability of the housing market and financial system, provides support for Canadians in housing need, and offers objective housing research and information to Canadian governments, consumers and the housing industry.

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